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Govt Allows Duty-Free Cotton Imports Till Sept 30 to Support Textile Sector Amid US Tariff Pressure
Cotton Import: The government has allowed duty-free import of raw cotton till September 30. The government has taken this step to ensure market availability of cotton, a key raw material for the textile sector. Let us know about this in detail.
The government has allowed duty-free import of raw cotton until September 30. The government has done this to make cotton available in the market, one of the main raw materials for the textile industry. Cotton was previously liable to 11 per cent import duty along with the Agriculture Infrastructure and Development Cess (AIDC).
According to the Finance Ministry's notification dated August 18, the duty exemption will be effective from August 19 and will remain in force till September 30.
The abolition of import duty is expected to ensure the availability of raw materials at globally competitive rates for the textile sector. Domestically, the sector is also facing duty inversion under the GST regime.
India's relief on cotton import duty comes at a time when Indian exporters, including the textile sector, are facing a hefty duty rate of 50 per cent in the US. The US tariff includes the existing 25 per cent duty and an additional 25 per cent duty, which will come into effect from August 27. This duty has been imposed as a penalty on India's purchase of Russian oil.
